You may have heard the term ‘unenforceable agreements’ or ‘unenforceable credit card agreements’ quite a lot recently.You may know that it is possible to claim that you agreement is an unenforceable agreement and have the balance written off. But what are unenforceable agreements exactly? It is all based on the 1974 Consumer Credit Act. (CCA) This act states that in law certain terms and conditions must be contained within the agreement. If they are not or the agreement is not signed, then the agreement is unenforceable.

The term unenforceable means that the agreement cannot be enforced and therefore no further repayments need be made once the agreement has be declared unenforceable.  You may be wondering why only agreements taken out before 2007 can be claimed. This is because after that time there is discretion allowed by the judge as to whether or not the agreement is enforceable whereas before 2007 there is no such allowance and even a court cannot enforce the agreement. Credit card, store card, HP, car finance and loans can be checked or audited to see if any breaches of the 1974 Consumer Credit Act can be found in the agreement.

The process is quite simple but somewhat time consuming. You will need the backing of a solicitor who is proactive and this can be found by using a CMC or claims management company.

First a true copy of your agreement will need to be obtained from your lender. They have 12 working days to reply. If they fail to do so or send a copy of terms and conditions (which is not the agreement) then they are ‘defaulted’. The case is passed to a solicitor who issues proceedings against the lender. If your agreement is sent back it is then audited to check for any breaches in the 1974 CCA.  Once these are identified it is then passed to a solicitor who prepares the case for court. You will be given free ‘after the event’ insurance to cover any costs which you case my need.

The first stage takes about eight weeks. The second stage which aims to have the balance written off take longer and very much depends on the response of the lender in question. No cases have gone to court because if the lender loses a precedent will be have been set. So they won’t risk this.  But many have been settled out of court or written off before court proceedings have been issued.

The best advice is to shop around and gather as much information as possible. The law is constantly being tested in court and changing all the time. So you will need to be patient and also be prepared for changes in the law which affect your case.

There is no need to consider IVA or Bankruptcy before you have had your agreements audited for unenforceability. It is good, in my experience to tell your lenders that you are having your agreements audited and offer them a token payment of a few pounds a month if you can afford it. They are often more willing to accept if they know you are having an audit.

It is the first step to a debt free life.

•  The CAB has identified widespread mis-selling of PPI policies, including many consumers that had PPI premiums added to their loan without being told by the salesperson.
• The CAB found that only 4% of PPI policyholders actually make a claim under their policy.
• 1 in 4 of all claims made under PPI Policies are rejected by the insurer, due to exclusions and limits in small print of the policy.
• Most policy premiums add 20%-56% to the cost of the loan, plus interest.
• The Office of Fair Trading estimate that a PPI policy to cover a £10,000 loan costs around £2500, of which a staggering £1500 is paid in commission to the lender.
• According to a recent report in The Sunday Times, an insurance industry insider estimated that as many as 70% of PPI policies have been mis-sold.
• It is estimated that PPI is worth £6bn in revenue to UK banks and Loan Companies
• The Financial Services Authority (FSA) has fined the following companies for mis-selling PPI policies:
• The HSBC-owned lender HFC Bank has been fined a record £1,090,000 by the Financial Services Authority for failing to treat customers fairly when selling Payment Protection Insurance. HFC sells a third of its policies in shops such as PC World and Curry’s alongside “Buy Now-Pay Later” deals.
• Hadenglen Home Finance Plc: Fined £182,000 in September 2007 for inadequate systems and controls when recommending re-mortgages and PPI. PPI failings took place between January 2005 and November 2006.
• Capital One: Fined £175,000 in February 2007 for failing to ensure that 50,000 customers buying credit cards and loans between January 2005 and April 2006 received important information about the policy.
• GE Capital Bank Ltd: (supplies cards for Asda, Comet, Debenhams and Topshop among others): Fined £610,000 in January 2007 for inappropriate sales of its store cards and credit cards.
• Redcats: Fined £270,000 in December 2006 for also not having adequate systems and controls in place to minimise the risk of unsuitable sales.

For those of you who may not have noticed, a large proportion of the UK population are in the process of reclaiming the Payment Protection Insurance (PPI) premiums that they have paid out, often in advance, often for worthless policies that wouldn’t even have allowed them to make a successful loss of earnings claim if they had tried.

Let’s be clear about this, PPI mis-selling is a huge scandal running into many billions of pounds, that makes the MPs expenses scandal seem like Mickey Mouse (so now they’re well matched I hear you think?).  Yet whilst MPs expenses were scandalous enough, and a further erosion of whatever trust may remain between public and parliament, the PPI mis-selling scandal has hit millions of people directly, costing them hundreds or thousands of pounds for EACH POLICY.

These PPI policies have been sold in large part by the banks (as well as other financial institutions), and mostly in the days before last autumn’s “meltdown” revealed the banks to be financially unstable and poorly controlled.  PPI was a hard sell, using unfair and even untruthful techniques to put the customer on the spot in order to make a decision that they would usually later regret, wonder about the wisdom of, or perhaps just try not to think about at all if they could possibly help it (a bit like the idea of going to vote).

Maybe PPI policies were a consolation prize for the banks, or maybe they were the wallpaper that covered the cracks, because the astoundingly large profit margins that PPI generated could cover up quite a few foolish fundamental financial failings.

Or, taking a step back, possibly PPI policies fuelled one of the fundamental problems, i.e. why so few bank staff nowadays actually possess formal banking qualifications – after all, bank employees are given targets for selling policies and opening new customer accounts.  This means that the selling of PPI and other financial products and services is much more likely to take place in a pressurised way.  This in turn is bound to make fewer people want to go into banking – they would be better off as a sales rep.  In fact, perversely, it is not uncommon for people with sales experience but NO banking knowledge to be recruited by the banks.

As was the case with politicians, being a banker used to be a respected profession, and the idea of having to sell themselves would have been anathema to most bankers only a decade or so ago.  Let’s remember that politicians have always had to sell (only they don’t have to do it continuously, as do poor beleaguered bank employees nowadays – and in the politicians’ case it is called canvassing).  Indeed innumerable politicians have been guilty of mis-selling, but the cost to innocent members of the public of that “mis-electing” can neither be calculated nor redressed.

The interesting and unavoidably depressing parallel is that many in politics and many in the banking industry are prepared to up the ante (even at a cost to others) when either their livelihood is at stake, or they think they can get away with it, or both.  So the most consoling conclusion we can possible draw is that human nature is something which will never change.  Enough of the philosophy.  Here are two more parallels, each with vastly differing levels of publicity.

Firstly, having now been subject to scrutiny, and a whole load of publicity, and being found lacking, the Houses of Parliament are now devising a system to improve the way in which expense claims are made.  The PPI industry has now been reviewed and banks (or other loan providers) now have to wait 14 days before selling PPI, to give customers a chance to shop around.

Secondly, in the once seemingly make-believe world of MPs expenses claims, David Cameron has said he will make his MPs pay back their expenses.  In the real world of “PPI reclaim” it is the case that within a few weeks of applying to reclaim their premiums, innocent customers who were mis-sold their PPI policies having their premiums refunded.  Better late than never for each of the above.

Yet there is a risk that many policyholders will experience “never” rather than “late”.  Often through their own pride.  Many people do not realise that they were as good as robbed by their own banks, yet rail against the MPs expenses scandal, because of the publicity it has received.

If you answer YES to any of the questions below, there is a good chance that you were mis-sold your PPI policy.  N.B. If you have, or have had, more than one PPI policy in the last 10 years, even if the finance that was covered has now been repaid, you should ask yourself the questions below for EACH and every PPI policy you have had.

1. Were you self-employed or not working at the time you signed up for the PPI cover?

YES ____ NO _____

2. Were you pressured into signing up for the PPI?

YES ____ NO _____

3. Were you told you had to take out the PPI at the same time as the loan?

YES ____ NO _____

4. Were you (or would you become during the course of the policy) the wrong age specified for PPI?

YES ____ NO _____

5. Were you told the PPI increased your chances of getting the loan?

YES ____ NO _____

6. Did they omit to tell you that you had a choice to look elsewhere for PPI cover?

YES ____ NO _____

7. Were you told or given the impression that the PPI cover was compulsory?

YES ____ NO _____

8. Did you have to pay upfront for the PPI but were not told that policies are available where you could pay monthly?

YES ____ NO _____

9. Did you ever increase your loan and find that your PPI premium was raised too without your consent?

YES ____ NO _____

10. Did they fail to ask if you had other insurance that would cover the loan? (It doesn’t matter if you didn’t have this, what matters is that they asked if you did.  For instance, you may have had a separate loss of income protection policy through an insurer)

YES ____ NO _____

11. Did they omit to tell you there were some exclusions that might affect your eligibility to make a claim?

YES ____ NO _____

12. Did you pay an upfront premium, repay the loan early but then still not receive a refund?

YES ____ NO _____

13. Did they fail to fully explain the terms and conditions to you?

YES ____ NO _____

14. Did you ever experience a loss of income and then try to make a claim on ANY of your PPI policies?

YES ____ NO _____

If, yes, was it successful?

YES ____ NO _____

If no, why not? ___________________________

If you have received a payout from the insurance, you won’t be able to claim the policy was mis-sold to you.

If possible find your copy of your policy’s terms and conditions. If you can’t find them, contact your lender to ask for a copy. Make sure it dates back to the time of your agreement as terms will change over time. Lenders can ask for £10 to provide this so include a cheque for £10 or a postal order to speed things up. The providers of PPI have a responsibility to ensure that you understand the nature of the product and that it is appropriate for you. All polices will have certain exclusions and you should have been told about them. As most policies are bought with a loan or credit card rather than standalone the key thing is. What was said at the point when you were sold the product?

The following are the key mis-selling categories and f you fit one or more of these you probably have a case but it is best to check with your claims management company first.

Were you told or sold the wrong thing?

This covers anything from being told the insurance was compulsory, to not knowing you had even purchased PPI, to the fact you were already covered through work or your partner. It also applies if the policy isn’t what you agreed to, you got store card cover in a shop and it wasn’t explained or you didn’t realise it’s a joint policy but only in one person’s name.  Lenders selling PPI polices are obliged to tell you about the specific criteria of the policy and to confirm it’s the right product for you. However, because PPI polices earn providers a high proportion of profit, staff are often highly encouraged to sell as many as possible, and are well remunerated for doing so, meaning mis-selling is rife.  When you contact a lender by phone or in person if they don’t give you fair, correct and reasonable information it’s likely you were mis-sold. Due to the volume of complaints, the regulators are quick to act on this issue.

Some common examples of PPI mis-selling

1. Were you told insurance was compulsory?

It’s a common complaint that consumers are told they must buy a policy from the same provider as the loan or credit card to be accepted for the product. Any company that subscribes to the banking code agrees it will not insist that you buy an insurance product from them, so although it can request that you have PPI from somewhere, it does not have to be from them.

Therefore if the salesperson:

* didn’t make it clear the policy was optional,

* implied or stated the loan would be more expensive if you didn’t take the insurance,

* implied or insisted you take out their policy to qualify for the product or help with your application,

* was very pushy when selling the product so that you felt you could not say no,

* would not let you continue with the loan application if you did not sign the insurance agreement as well,

2. Did you already have insurance cover?

If you were already covered – for example you had a separate income protection policy or your employer provided an illness and redundancy package, and you informed the salesperson that you had this cover but they insisted you also had to take their insurance; or you weren’t asked if you had any alternative cover, go to the section.

3. Have you tried to cancel your policy?

Prior to Mar 07 some contracts had terms that said you could not cancel the policy even if you had paid off your loan or had a change of circumstances. Since the FSA looked into these refund terms, cancelling is now possible for all current and future contracts. So if you tried to cancel your policy and were told you weren’t allowed or that you needed to take out a new agreement with different terms claim now!

4. Is the insurance term too short?

Long term loans are often sold with a single premium policy lasting for a maximum of five years, no matter how long the loan is for. If you’ve now checked your policy and found that it does not cover the full term of your loan, but thought that it did, the salesperson should have pointed this out. If not- claim now.

5. Do you have a joint loan but the insurance is only in one name?

If you’ve checked your paper work and have found that all names responsible for paying back the loan are not covered under the insurance, which is unfair in itself as either could be chased for money if you get behind with payments, and were told or thought that all names were covered, claim now.

6. Did you sign up for the finance in a shop?

If you got a store card or insurance on a car dealership loan, it was likely to be sold by someone with no financial background, meaning more room for error, and a whole catalogue of misinformation could have been given. If this happened to you, check the insurance was sold in your best interests.

7. Didn’t realised you had been sold insurance?

Have you just checked your loan agreement or credit card statements to find that you have been paying for insurance, but didn’t realise until now that you had it or what it’s for? Some old agreements, particularly store cards, may have used pre ticked boxes requiring you to opt out of the insurance rather than opt in, which is unfair. Always check and if you’re paying for insurance you didn’t know you had claim now. If you have an inappropriate PPI product and weren’t told it was inappropriate or you don’t think you were given the full information on what the policy would and would not cover, send a letter asking for an explanation.

8. Mis-sold unemployment cover your policy only covers accident and sickness, with no unemployment element, this section doesn’t apply to you.

9. is the policy suitable?

The unemployment element of PPI is only suitable for people who were ‘working’ at the time they took out the policy, therefore you should have been asked about this at the time of application.

Example question: Are you in permanent employment, self-employment or contract employment for more than 16 hours per week?

10. What is classed as ‘working’?

Providers have different definitions, so it’s important to examine your policy in detail.  If you’re self-employed, check whether your specific set-up is covered. As the ‘unemployment’ element is a substantial part of the insurance cost, many who are self-employed have been paying for a semi-useless policy and this could’ve meant a huge waste of money.  Those who were unemployed at the start of the policy (including students and stay at home parents), were almost definitely mis-sold the insurance as, obviously, you wouldn’t be covered for losing your job. The same applies if you knew you were going to become redundant or retire when you purchased the policy. If it isn’t suitable, were you mis-sold? Assuming the policy isn’t suitable; we must establish whether the salesperson bothered to check. Remember, it’s the situation you were in at the time you got the cover that counts, so if you were an employee then, but are now self-employed, that’s not their fault – unless you’ve subsequently asked if the cover was still suitable and been misinformed.

It’s likely you were mis-sold if either:

A. You made the salesperson aware of your situation and they suggested you get it anyway.

B. You weren’t asked about your employment status at all.

11. Age is an issue

Most polices have an upper age limit of 65 or 70, after which you’re not covered for anything. If you were older than this when you took out your policy, you were definitely mis-sold. If you have passed the age limit since taking out the policy, your cover and therefore payments should have stopped, but if they haven’t for any reason you’ll at least be entitled to a refund of payments made since passing the age limit.

This situation is rare, as providers’ records should flag up someone’s age being too high from their date of birth, but do check.  If you were unemployed or retired, then check if the policy included unemployment cover. If it did, the unemployment cover is worthless and this should’ve been pointed out to you.  If you were self-employed you need to check whether you were eligible for a payout if your business went bust (usually not) and if not, and it wasn’t pointed out, you may have a case. Have you been paying for a policy which includes ‘unemployment’? If you don’t need unemployment cover, perhaps because you don’t work or are self-employed, and mentioned this when you took out the policy, or were never asked about your employment status at all, a reclaim may be possible.

12. Medical issues

Most policies exclude existing medical conditions, meaning you are unlikely to be covered for any medical problems you have had in the past. This is something you should’ve been asked about and informed the policy could be affected.  Lenders should ask about health issues when you get a policy, and if you weren’t informed the policy could be affected by medical problems or were never asked about your medical history, a reclaim may be possible.

Example question: Have you had any illness, accident or other treatment which resulted in you being off work for more than 14 days?

13 What is a pre existing condition?

Each provider has its own rules, but most are strict and may decide whether to pay an insurance claim based on what it considers to be reasonable for you to have known about before the policy started.

If you make an insurance claim on health grounds insurers may ask for medical records or proof you didn’t have the problem when you took out the policy, and will probably turn it down if you’ve had a similar medical problem before.  This is one of the biggest reasons insurance payouts are rejected as providers often take a ‘broad brush’ approach, for example if you had a bad lower back, they may decide not to pay for other unrelated back problems.

14. Were you asked?

Salespeople are not obliged to have a detailed medical discussion, but if they didn’t mention medical exclusions at all, the policy could be void. If you’ve had medical problems in the past this is not enough to make a reclaim, the key point is whether, at the time of application, you were told this was an important part of the policy and were asked to disclose any past health issues.

Some insurers provide medical cover if you have been symptom free for a few years prior to taking out the policy, so do check your own paperwork carefully. If this applies to your policy, then you weren’t mis-sold, so this section does not apply to you.

15. Other health related issues

As well as pre-existing health conditions, some general health problems are specifically excluded from many polices, such as stress. Check the terms of your own policy carefully to see if any particular conditions are not covered and if you were not told about such exclusions from the policy, or were incorrectly informed when you asked about them, you may have been mis-sold.

16. Did you buy online?

If you bought your loan or credit card online, reclaiming more difficult as the full terms and conditions  are usually available there. An exception to this is if you purchased from a lender using pre-ticked boxes, meaning you had to opt out of the insurance rather than opt in. In July 07 all lenders agreed to stop doing this but if you took out an agreement before this date check your policy for insurance.

17.  Single Premiums

A single premium policy is where the whole cost of the insurance is added as a lump sum at the start of the agreement, which is then repaid over the term of the loan. If you had one of these polices and left or changed the agreement part way through, you may be eligible for a part refund. This form of insurance is now frowned upon. In March 07, the regulator, the FSA said it thought they were likely to be unfair to consumers as they were restrictive and most didn’t allow refunds if a contract ended early, meaning you have paid the insurance for the whole term of the loan, even if it is not used. As a result of the FSA’s report, new and existing loan contracts must now allow refunds if a policy is ended early. This opinion greatly improves the reclaiming case.

There are many advantages and disadvantages to payday loans.
Payday loans can be a great way to get cash in a hurry when you need it.

They also require no credit check, which means that anyone with a job and a checking account can get a payday loan, even if they have bad credit. Turnaround time for approving a payday loan is also quick, especially if you fill out an application on line rather than going into a branch office and filling out an application. Also, if you opt for the online approach, the money can also be deposited directly into your checking or savings account.

If you go into a branch office of a payday loan company, you will be given cash or a check to cash at a bank, which means you will have to not only drive to the payday loan company, but also drive to the bank to cash the check or deposit the money – having it electronically deposited directly into your checking account will also make the funds available quicker.

It’s common knowledge that economies around the world are suffering.  It’s no different in the UK and it’s time to turn things around before they get out of hand.  People may not be able to turn the economy around in a day or change the way the global finances are dealt with but it is well within one’s reach to look at home first and find a solution to your own personal financial situation.  And that starts with tackling personal debt. Here are ten tips on how to get your personal debt under control and conquer the beast that’s been attacking your pocket.

1. Pay off your highest interest debt first.  If you have a car loan that has a higher total of money owed to it that your credit cards, throw more of your monthly income at that first. Chances are it is a multi-year loan with a higher interest rate than your credit cards.  And if you can pay that off sooner than is scheduled by paying more money towards the principal, you have a good chance of saving a lot of money that would have otherwise gone to paying interest on that loan.

2. Keep your credit card debt at a consistent level.  This will require you to use your credit card less than you may be accustomed to, but it is a sound way to handle not building up more debt while eliminating debt in another area of your finances.

3. Use cash instead of credit cards.  Budget in a certain amount of cash to be spent per week, and try not to withdraw more cash than that per week.  By breaking it down into a weekly budget and only allowing yourself a minimal amount, you’re more likely to stick to your cash budget and not overspend.

4. Cut back on the vices.  Whether its cigarettes or coffee, cut down and see how much you’ll save.

5. Put aside your spare change.  You’d be surprised at the end of the year at how much that spare change will add up to.

6. Eliminate some of the expenses you already have.  It might be a luxury that you enjoy but if you can do without it that money can be reallocated towards something more beneficial.

7. Don’t buy something unless you need it.  It’s amazing how much money we spend on frivolous materials that are either hardly used or that we don’t even use at all.

8. Watch your energy bills.  Using less electricity and gas can add up to a large amount of money saved over the course of the year.

9. Set up a weekly budget, a monthly budget and an annual budget.  Be certain to check it often and see if you are staying on course.  This is a way to hold yourself accountable and is likely to help you stick to your financial plan.

10. Be smart, control your impulses and make wise financial choices.

They will pay off.

Many of these people are seeking help in the form of an IVA.  IVA applications are on the increase as many face insurmountable debt. To apply for an IVA you usually need to contact a company that specialises in debt.  There are many of these companies on the Internet.  With your help, this company will draft a proposal which will outline how much you owe, your earnings, and the amount which you can pay over the next 5 years.

The proposal must be approved by the creditors who own at least 75% of the total outstanding debt. Should the creditors agree, part of your debt will be written off and the interest will be frozen.

There are usually no upfront charges for IVA consultations.  Getting advice from an IVA expert can benefit you in making the right decision regarding your debt.

Who can apply for an IVA?

An IVA is available to all Individuals, who are experiencing financial difficulties on their unsecured debt. To apply for an IVA you should have a stable income and surplus cash each month after paying for your basic living costs. To make an IVA work for you you should have at least £15,000 of unsecured debt and more than 3 creditors.

Is an IVA free?

Most debt management companies do not charge up front fees for IVA’s. Fees can vary according to the overall level of debt and are built into the monthly payments. A full detailed schedule showing the level of fees to be charged in an IVA is included within the IVA proposal for you and your creditors to see.  Do not go with any companies that charge upfront fees for taking out an IVA.

How long does an IVA last?

An IVA usually lasts for 60 months and will continue as long as regular payments are being made.

Which debts can be included in an IVA?

* Outstanding Inland Revenue debts
* Loans from friends
* Credit and store cards
* Bank accounts
* Finance company loans
* Outstanding VAT

Can I arrange an IVA directly with my creditors?

To apply for an IVA you will need the services of a licensed Insolvency Practitioner who will supervise and review your IVA throughout the Arrangement.

One pro is that once your debt is consolidated, you will only have to be responsible for keeping track of one payment instead of several. You will also be dealing with only one creditor, which can make paperwork and communication much easier.

Another pro is that often your monthly payment on the consolidated loan will be lower than it was when you were trying to pay off several debts. This can be a huge benefit if you were struggling to make all the minimum payments.

Finally, in many cases, your interest rate on the consolidated loan will be lower than the interest rates you were paying on credit cards when you had multiple debts. This can save you money in the long run, especially if you make paying off your debt a priority and pay more than the minimum payment each month.

But the picture of loan consolidation is not all sunshine and roses. If you can afford to make only the minimum payment on your consolidated loan, it will take you years to pay it off. So, even if the interest rate is lower, you may still end up spending more money in the long run.

Bankruptcy

It is important to note at this point that declaring yourself bankrupt is not something that you should do lightly, and you should seek qualified advice.

If you own your home jointly there may be steps that you can take to sell your share of your home to your partner/another family member which would remove the risk of it being sold. You must tale specialist advice on this.

You need a form from your local court which you need  to present when you declare bankruptcy. You should also check at this point what the current fees are for declaring yourself bankrupt. This form will need to be filled in before you petition for bankruptcy.

Before visiting the court you need to be aware that any bank accounts you have an interest in will be frozen. You therefore need to make sure that you have enough cash to provide for your basic needs until you are next paid.

You would normally make an appointment at the court to declare yourself bankrupt. In actual fact if you turn up with the correct forms and the payment without an appointment during normal court hours you have to be seen, but normal practice is to make an appointment. The court appearance will normally be a formality, and you will then be free of your unsecured debt immediately.

After you are declared bankrupt you will need to attend an interview to talk about your financial situation and the reasons for your bankruptcy. The insolvency service will want to find out whether you have any assets that can be sold to pay money into your bankruptcy. Also, they will go through your budget to see if you can afford to pay any money from your earnings towards your bankruptcy.

All of this detail needs to be discussed with a qualified adviser, but it is worth pointing out one key fact. If you are part of a couple, then the insolvency rules do not apply to your partner, i.e. they cannot insist that your partner pays anything towards mortgage/rent or utility bills etc.

This is very important since if you fill in the forms showing that you pay half of the mortgage/rent this may result in you having a monthly excess. If so, you will be ordered to pay some of this money to your creditors for up to 3 years after your bankruptcy is discharged. If you don’t have any excess then you will be relieved of any responsibility for paying your creditors when you are discharged.

The insolvency service will want to know if you have any assets that can be sold. They will only be interested in high value items such as your home, cars, boats etc. Current practice in the UK is that bankrupt’s homes are very rarely visited to assess whether there are any personal items that can be sold. The time and effort is simply not worth the small amounts of money that would be re-couped.

Your car may be at risk of being sold unless you can prove that you NEED it for work (i.e. you cannot travel to work by public transport).

Once your bankruptcy is discharged you will be free to start re-building your debt free life. You will probably find it almost impossible to get unsecured credit for a number of years. Mortgages are more available, but the rates will be higher. It pays to shop around, because the rates on adverse credit loans can vary widely.